Security deposits in Alaska are regulated by Alaska Statutes Section 34.03.070. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Security deposits are generally limited to two months’ rent. However, this cap does not apply if the monthly rent is more than $2,000. Landlords/property managers may also require an additional month’s rent as a pet deposit for any pet that is not a service animal. The pet deposit must be accounted for separately from the primary security deposit and may only be applied to damages that are directly related to the pet.

Holding & Interest Requirements

Holding Requirements: Security deposits should be kept in a trust account at a bank, a savings and loan institution, or with a licensed escrow agent, if possible. Landlords/property managers can put all security deposits into one account, but they must keep track of each tenant’s security deposit separately and not mix the security deposits with other money.

Interest on Deposits: Alaska state law does not currently require landlords/property managers to pay tenants interest on security deposits. 

Information Provided to Tenant: There is no specific requirement for landlords/property managers to provide tenants with information about where the security deposit is held.

Deposit Refunds

Timeline: Security deposits must be returned within 14 days after the tenant vacates the property if no deductions are made, or within 30 days if deductions apply.

Deductions: Landlords/property managers may deduct the following from a security deposit:

• Unpaid rent or utilities
• Damages beyond normal wear and tear
• Cleaning expenses that are necessary to return the unit to its original condition
• Cost of removing abandoned property

Documentation of Deductions: An itemized list of deductions must be provided to the tenant within 30 days of the tenant’s vacancy if any amount of the security deposit is withheld.

Penalties for Violations: Failure to return the security deposit or provide required documentation may result in a landlord/property manager being liable for up to twice the security deposit amount that is wrongfully withheld.

Sale of the Rental Property

If the rental property is sold, the landlord/property manager must transfer all security deposit funds to the new owner and notify the tenant of the sale.